MAG Silver (MAG) Q4 2024 earnings summary

Executive summary

• Net income reached $77.8M ($0.75/share), driven by $92.9M equity income from Juanicipio and adjusted EBITDA of $186.7M.

• Juanicipio delivered strong cash flow, with $356.7M operating and $292.3M free cash flow, and paid inaugural dividends to MAG totaling $26.4M.

• Inaugural total dividend of $0.18/share declared, returning $18.6M to shareholders, with ongoing fixed and cash flow-linked dividends planned.

• Ore processed at Juanicipio totaled 1.33M tonnes at 468 g/t silver, producing 18.6M oz silver and 26.8M oz equivalent silver.

• Silver recovery improved to 93% due to new concentrate production and plant optimizations.

Financial highlights

• Sales at Juanicipio rose to $627.4M, up $185.1M year-over-year, driven by higher volumes and prices.

• Gross profit at Juanicipio increased to $382.6M from $202.0M, with a cash operating margin up to 76% from 61%.

• MAG's working capital rose to $160.1M, with cash of $162.3M and no long-term debt at year-end.

• Net income for MAG was $77.8M, up from $48.7M, and adjusted EBITDA nearly doubled to $186.7M.

• Juanicipio's production costs fell by $18.3M, aided by depletion of higher-cost stockpiles and lower treatment charges.

Outlook and guidance

• 2025 Juanicipio silver production forecast: 14.7–16.7M oz (13.1–14.9M payable), at 4,000 tpd and 380–430 g/t head grade.

• Cash cost guidance: ($1.00) to $1.00/oz silver; AISC: $6.00–$8.00/oz silver; sustaining capex: $70–80M.

• Expansionary capex of $22–28M planned for underground conveyor system, commissioning in late 2026.

• Ongoing fixed quarterly dividend of $0.02/share, with additional cash flow-linked dividends if silver prices exceed $20/oz.